Dollar Loses More Ground

In Americas on April 28, 2011 at 6:17 pm

By Stephen L. Bernard

The beleaguered dollar extended its broad decline after U.S. economic data pointed to a dismal employment picture and slowing growth, bearing out the Federal Reserve’s reluctance to tighten monetary policy anytime soon.

The U.S. Dollar Index was lower for the day, but off the depths it reached overnight.

U.S. jobless claims unexpectedly jumped last week and the government reported the pace of economic growth in the country slowed sharply in the fourth quarter, further adding to the negative dollar sentiment permeating the market.

“There’s no fundamental justification to be long dollar right now,” said Paresh Upadhyaya, director of G10 FX Strategy at Bank of America-Merrill Lynch in New York.

In midday trade, the euro was at $1.4802 from $1.4794 late Wednesday. The dollar was at ¥81.55 from ¥82.04, while the euro was at ¥120.66 from ¥121.37. The U.K. pound bought $1.6637 from $1.6636, while the dollar traded at 0.8727 Swiss franc from 0.8738 franc.

The ICE U.S. Dollar Index, which touched its lowest levels since August 2008 earlier in the global session, was most recently at 73.253. It ended Wednesday at 73.519 and fell as low as…

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